SAP fined R81 million

SAP fined R81 million

The Special Investigating Unit (SIU) is appreciative of the Special Tribunal’s ruling requiring Systems Applications Products (SAP) to reimburse the Department of Water and Sanitation (DWS) for more than R81 million.

The Special Tribunal ordered SAP to reimburse DWS R413 million in March 2022, which represents the entire amount DWS paid to SAP for software license and maintenance contracts between 2015 and 2016.

More than R1 billion was spent on the contracts. However, SAP challenged R83 million in expenses it incurred from third parties.

The Special Tribunal determined that SAP must pay DWS the whole overdue amount of R81 502 073.62 within five days of the court judgment in a fresh ruling dated September 29, 2022.

After SIU investigations showed that the contracts between the department and SAP were erroneous and illegal, the Special Tribunal made its decision. The court then invalidated these agreements.

The Special Investigating Units and Special Tribunals Act 74 of 1996 gives the SIU the authority to file a civil lawsuit in the Special Tribunal or the High Court to address any misconduct that comes to light during its investigation.

The SIU submits evidence to the National Prosecuting Authority for further action where it implicates criminal behavior.

Allegations of fraud and corruption may be reported through the following channels: hotline: 0800 037 774 and siu@hotline.co.za.

»SAP fined R81 million«

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